Determinants Of Commercial Bank Profitability In Vietnam

Abstract

This study examines how the profitability of commercial banks in Vietnam is affected by bank-specific factors. The target of this research supports the notion in which factors have a strong effect on bank profitability. Specifically, factors such as size, capital adequacy, liquidity, and deposit are recognized as the most significant determinants of profitableness. Bank size and capital adequacy have positive effects on this profitableness, while deposits and liquidity exhibit both positive and negative effects. The results indicate that bank-specific variables play a crucial role in having an influence on the profitability of commercial banks in Vietnam. Therefore, it is essential for bank management in Vietnam to competently handle these factors to achieve favorable outcomes.